Wall Street is wary of September, which is historically the worst month for the U.S. stock market. Market observers named this market anomaly the September Effect. The tale persisted because the S&P 500 Index declined in September in six of the past 10 years, with a -2% average return in the same period.
If stocks do tumble and dip during the first post-summer month, shouldn’t it be the best buying opportunity, too?
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A different story
Canada’s main stock exchange tells a different story and debunks the curse. Thus far in September 2025, the TSX has posted a string of new record highs. Also, the Index is up 18.55% year to date, following a 10.34% advance in the last three months. A potential interest rate cut by the Bank of Canada this month could further boost the TSX.
Meanwhile, many stocks have joined the record-setting run, including Extendicare (TSX:EXE) and Telesat Corporation (TSX:TSAT). The former is a lucrative option for income-focused investors and retirees, while the latter is a top pick for growth investors.
Dividend play
Extendicare belongs in the medical care facilities industry. The $1.1 billion company owns and operates long-term care (LTC) homes for seniors and provides in-home healthcare services. The sustained and increasing demand for healthcare services is the key driver of its strong financial performance.
In the first half of 2025, revenue and net operating income (NOI) increased by 5.9% and 7.9% year over year to $758.1 million and $105.2 million. Net earnings for the period rose 20.5% to $47 million from a year ago. Its president and CEO, Dr. Michael Guerriere, said Extendicare’s operations are scaling efficiently. He added that demographic trends drive demand.
In July this year, the Ontario government announced the new 2025 Long-Term Care Home Capital Funding Policy (CFP). The CFP supports the construction of new LTC homes in the province, and the funding is not time-limited. Extendicare plans to advance 18 redevelopment projects for the new program.
At $13.14 per share, investors enjoy a +26.89% year-to-date gain and partake in the 3.84% dividend. The best part for income-seekers is that the payout frequency is monthly. Notably, EXE hasn’t missed a monthly cash dividend payment since January 2013, notwithstanding the healthcare sector’s volatile nature.
Unique high-growth investment
Telesat, a $393 million satellite operator, provides mission-critical connectivity solutions to clients in the communication equipment industry. Thus far in 2025, the year-to-date market-beating return is +54.89%. As of this writing, TSAT trades at $36.60 per share.
Besides its Geostationary Orbit (GEO) satellites, the company boasts the Telesat Lightspeed (LEO) network. The LEO network was optimized to address the needs of government, aeronautical, maritime, and telecom customers. Telesat’s allied businesses include technical consultation and support services to satellite operators, insurers, and other industry stakeholders worldwide.
Dan Goldberg, Telesat’s President and CEO, stated that Telesat Lightspeed is making strong technical and commercial progress. There’s revenue visibility due to the contracted backlogs of $900 million and $1.1 billion for GEO and LEO, respectively, after the first half of 2025. Given its significant growth potential, TSAT could be a unique case of buying high and selling higher.
Buying opportunities
The September Effect could be a myth, judging by TSX’s performance this month. Extendicare and Telesat are buying opportunities for dividend or growth investors. You can invest in both for income and capital growth.
